FAQ

1. Who owns LTWP?

LTWP is owned by seven shareholders namely:

  • Aldwych Turkana Limited (owned by Anergi, an African Power Company established through the joint venture between Africa Finance Consortium and Harith General Partners of South Africa);
  • KP&P Africa B.V.;
  • The Danish Climate Fund through Investment Fund for Developing Countries (IFU);
  • KLP Norfund Investments AS of Denmark;
  • Vestas;
  • Finnfund- the Finnish Fund for Industrial Cooperation Ltd; and
  • Sandpiper.

LTWP is financed by a consortium of senior and subordinated lenders specifically:

  • European Investment Bank;
  • African Development Bank;
  • The Trade and Development Banks (TDB), formerly the PTA Bank
  • East African Development Bank (EADB);
  • PROPARCO;
  • Netherlands Development Finance Company (FMO);
  • Deutsche Investitions- und Entwicklungsgesellschaft (DEG);
  • Eksport Kredit Fonden of Denmark (EKF);
  • Standard Bank of South Africa;
  • Nedbank of South Africa; and
  • EU Africa Infrastructure Fund (EU-AITF).

2. When will we see 310MW being supplied to the national grid?

LTWP has 365 Wind Turbine Generators (WTGs) each with a capacity of 850kW for a total installed capacity of 310MW.

Depending on the wind speeds and the consistency of the wind, the WTG will, according to the power curve produce from 0kW (no wind) to 850KW (>17/18 m/s).

The entire plant comprises 365 WTGs, 365 step-up transformers 0.69/33 kV per Unit, a 33kV collecting grid, a sectionalized 33kV substation, step up block transformers 33/220(400) /30kV including the Dynamic Reactive Power Compensation Systems and all miscellaneous equipment, infrastructure and control and a SCADA System in place and fully installed.

Wind farms around the world operate at different capacity factors depending on wind speeds. As wind is an intermittent source of energy, capacity factors for most wind farms in the world average between 30%-40% of the farms’ total installed capacity.

Since LTWP began injecting power into the national grid on 24 September 2018, the wind farm has averaged capacity factors of above 70%, peaking at 99% at 307MW.  

3. When will Kenyans start seeing the benefits of this project?

The benefits of the Project are both on micro and macro levels. Between 24 September 2018 and 31March 2019, the wind farm has injected 737,683,544 kWh of clean, reliable, renewable energy into the national grid. This has increased Kenya’s spinning reserve capacity and reduced over reliance on diesel-powered electricity sources in drier months.

In this same period, LTWP displaced approximately USD 47 million of expensive fossil fuel imports; a saving on the country’s current account. This figure is expected to grow to USD 140 million by November 2019.

On a larger scale, the successful completion of the project on time and on budget showcases Kenya as a safe and reliable investment destination for mega projects. LTWP is currently the largest private sector investment in the country’s history with one of the most complex project finance structures undertaken in East Africa. Its success proves Kenya is now ready for large-scale private sector infrastructure investment.

4. What are the comparable costs of wind power?

Wind is one of the cheapest sources of electricity. For the first six years of the 20-year Power Purchase Agreement (PPA), LTWP will sell energy to KPLC at KES 8.53 per kWH, thereafter it will sell energy at a cost of KES 7.68 per kWH.

5. Why was a fine paid of KES 5.7 Billion paid by KPLC to LTWP? Why was this cost pushed to the consumers and can we expect a refund?

The PPA included contractual implications for both LTWP and KETRACO in the event that either entity did not deliver the wind farm or the Transmission Interconnector (TI) respectively on time. LTWP achieved First Commercial Operations (119 WTGs) on 27thJanuary 2017 and ramped-up completion of all 365 WTGs on 29 August 2017. The TI was finally delivered in September 2018. Under the PPA, as long as LTWP had at least 50 MW (59 WTGs), it was “mechanically available” –i.e. had the Transmission Interconnection Operation taken place- it would have been able to produce power. Based on this contractual agreement LTWP is entitled to the TI Delay Payments.

LTWP has loans with repayments of approximately KES 8.5 Billion per year. LTWP had to repay its loans and remain operational while awaiting the completion of the TI.

LTWP has only received KES 5.7 Billion of the KES 14.6 Billion that it is owed by KPLC for this delay and is not charging interest for the balance whose payment has been deferred over 6-year period.

LTWP has no input in transferring the cost of the KES 5.8 Billion to the final consumer. We therefore cannot speak on behalf of KPLC on the possibility of a refund.

6. Experts say LTWP can only achieve about 50% of its installed capacity when generating at peak, is this true?

False.

Since the wind farm became operational on 24 September 2018, it has operated at an average capacity factor of over 70%

LTWP has a total installed capacity of 310 MW, meaning that at favourable wind speeds and consistency, the farm can produce up to 310MW of power. The PPA between KPLC and LTWP stipulates that LTWP should operate at a capacity factor of 62%.

7. Why are you not supplying to the areas around the farm first?

LTWP is an Independent Power Producer (IPP) and legally, can only sell power to the Off-taker (KPLC). The Rural Electrification Authority (REA) is legally responsible for delivering power in the area we operate and will need to liaise with KPLC to purchase power from them to supply to the residents of the area.

8. Is there potential to expand the farm so more power is being generated? Why did you stop at 365 turbines?

We undertook studies to determine what level of wind power could be absorbed safely by the national grid and at the time, a maximum capacity of 310 MW (allowing for capacity factors between 50-70%) was deemed prudent. As Kenya’s demand rises and there is sufficient spinning reserve to balance intermittency occasioned by wind power; and subject to GOK/ KPLC requirements, LTWP may explore expansion although there are no plans for this at this stage. Our commitment is to first deliver cheap, renewable power that has been long awaited by Kenyans.

9. How long will the wind farm generate power for Kenya? What happens at the end of this project?

LTWP has a 20-year PPA with KPLC. The technology in use will most likely have become obsolete at that time (if not earlier). At the end of the 20 years, LTWP will consider the options available. These could be:

  • Upgrade of the wind farm (under a new contract with the national government, county government and KPLC);
  • Demolition of the wind farm (wind farm fully removed); or
  • Sale of the wind farm to a willing buyer.

10. How are you storing power when there is a surplus?

Wind power cannot be stored so it must be used when generated. LTWP provides KPLC with forecasts and KPLC has to plan the energy mix in the system. Depending on the demand, KPLC will ask LTWP to either dispatch or curtail (i.e. not to generate) the power.

11. What happens when there is not enough wind?

LTWP provides forecasting to KPLC on how much it is able to produce half-hourly. When the wind drops, KPLC’s National Control Centre (NCC) must balance the load with “spinning reserve” which is power from sources that are instantly available. This is standard dispatch protocol and best practice uses hydro/ geothermal as spinning reserve.

12. How are the communities around Lake Turkana benefiting from the project?

Since the Project’s inception, LTWP has ensured that the local communities benefit from the project. As part of this commitment, LTWP established the Winds of Change Foundation (WoC), which has been working to improve the livelihoods of the communities in the project area. To date, the Foundation has spent over USD 2.8 million on implementing projects that enhance employability through primary and secondary education and vocational training support. WoC is also working to improve access to health services by supporting health education and facilities; and improving access to water by constructing boreholes and water supply and access points.

  • Examples of recently completed community development projects include:
    • Construction of science laboratories at Nyiro Girls Secondary School in Kurungu and Korole Boys Secondary School in Kargi;
    • Construction of two classrooms at the newly established Loiyangalani Polytechnic Institute;
    • Construction of an 80-pax dormitory at Nyiro Boys Secondary School in South Horr;
    • Construction of a dispensary in Sarima;
    • Upgrading of a dispensary in Burri-Aramia by installing a solar system, shelving units, water system, fridge/freezer for keeping vaccinations cool, and by constructing two toilets and an incinerator as well as supplying maternity beds;
    • Installation of a solar system and construction of a water pipeline system at Kulal Girls Secondary School in Mt. Kulal;
    • Installation of solar systems at Lontolio and Illaut dispensaries, and at Laisamis Hospital;
    • Establishment of the first IT Centre in Laisamis Constituency, in Korr; and,
    • Construction and equipping of boreholes and other water systems in Sarima, Lonjorin, Ntil, Laga El Fereji, Arge, Larachi, Gatab, Olturot and Illaut.

More information about WoC can be obtained at https://ltwp.co.ke/winds-of-change/, while an overview of some of the projects undertaken by WoC can be found at https://ltwp.co.ke/community-projects-map/

13. What areas are covered by Winds of Change?

  • Winds of Change operates within the administrative boundaries of Laisamis Constituency. Given the large scale of the constituency, LTWP focuses on:
    • Communities located in the immediate area of the wind farm (i.e. Loiyangalani. Mt. Kulal, South Horr and Sarima); and
    • Communities located within Laisamis Constituency.

14. Is there possibility of exporting the energy you generate?

Based on the PPA, LTWP can only sell to KPLC. KPLC can (and ideally should) export the cheap wind power to neighbouring countries. . As Kenya gets connected to the various power pools (via Namanga and Lessos), it will able to export power and earn revenue rather than curtail power and pay for unused power under LTWP’s take-or-pay agreement. LTWP offers KPLC and Kenya an incredible opportunity to become a regional trader/ supplier.

15. Do you have any plans to tap similar sources of energy in other parts of the country?

At the moment, LTWP is focused on ensuring that we meet all our contractual obligations to deliver power from the plant. Wind power plants have a long gestation period and Kenya will have to undertake studies to determine what its demand/ supply will be in years ahead along with the planned plants in the Least Cost Power Development (LCPD) Plan 2017. LTWP started planning in 2008 and came on-line in 2018, so it does take time!

16. Do you plan on adding Tesla battery storage?

LTWP currently has no plans to do this. Tesla “big batteries” provide, at least in LTWP’s scenario, opportunity for low-value midnight to dawn production to be stored and sold into the day peak- and that is the widest arbitrage available in the electricity market. However, because LTWP is one of the cheapest power sources and almost at the top of the economic dispatch merit order, it is not more economical for KPLC to dispatch all of LTWP’s power. In order for this to successfully happen, night-time power demand and incentives to shift power usage to night-time are crucial.

17. There are turbines that can produce 5MW, is it possible to replace a 850kW turbine so you are producing more power with one turbine? Why did you opt for the lower capacity WTG?

LTWP originally wanted to use 2MW turbines (V90) but for logistical reasons went for the 850kW turbine. The V90 has a hub height of 80M that proved logistically impossible to transport in a safe, cost-effective and efficient manner. Studies indicated that every roundabout between Mombasa and Nairobi would have had to be “cut through” for an entire year to allow transportation of the V90. Also, the newer technologies have more complex direct-drive gearbox technology that could not easily be serviced in our remote location and would have resulted in extreme periods of downtime. The turbines we use at LTWP, the V52, were at that time (and for remote locations continue to be) the best option. Going forward, particularly in areas that are not as remote, larger capacity turbines will become more prevalent.

18. How much land is being utilized by Lake Turkana Wind Power Ltd?

The land used for the project is leased by LTWP from Marsabit County for a term of 33 years with an option to extend twice up to 99 years. The entire concession area is 150,000 acres, representing less than 1% of Marsabit County. However, the actual project site on which the wind power project sits is 40,000 acres.

Only 0.2% of the site is occupied by physical structures. LTWP’s permanent structures include 365 wind turbines, a substation and workers’ accommodation.

The remaining land, representing 99.8% of the project site, is open to the public and continues to be used by the local nomadic population for settlement, grazing of livestock, and access to water points. Moreover, the C-77 public road passes through the project site, from the southern end to the northwest end.

The project site is not fenced. However, there are two fenced areas, which are (i) the substation, for health and safety purposes; and; (ii) the workers’ accommodation, for security reasons.

19. How many people has LTWP project employed and what employment opportunities exist going forward?

The LTWP project has employed more than 2,500 people during the construction phase of the project, of whom about 75% came from Marsabit County.

As of Feb 2019, the project employed 449 people, of whom:

  • 341 (76%) are from Marsabit County;
  • 94 (21%) are from other parts of Kenya; and
  • 14 (3%) are expatriates.

The total number of employees during operations will fluctuate between 375-500 people. Moreover, LTWP, through the WoC Foundation prioritizes the hiring of local contractors to implement community development projects where possible. These local contractors in turn employ locals from Marsabit County.

20. What should I do if I would like to be employed by the Project?

As the construction phase of the Project has been completed, fewer employment opportunities exist now compared to the construction phase. Going forward, the operational jobs that will be available will require specific skills and are advertised HERE on our website and currently by our Community Liaison Officers.

Those interested in applying for a job on the project can contact us at:

Lake Turkana Wind Power Ltd

P.O Box 2114, 00502

Nairobi

21. How does LTWP recognize human rights issues?

LTWP is committed to ensuring that the development and operation of the Lake Turkana wind farm has minimal negative impacts on the communities within the Project’s footprint.

LTWP treats all individuals and communities, irrespective of ethnic or social origin, definition or categorization, with respect and without discrimination. LTWP believes that this non-discriminatory approach has fostered an environment where there is less inter-tribal conflict among the communities.

Throughout the Project’s lifecycle LTWP commits to informing the affected communities about the Project, sharing their views, and obtaining broad community support. LTWP will continue to ensure that consultations are conducted in good faith, are culturally appropriate, gender sensitive, voluntary, free from external interference and non-manipulative.

All contractors and employees on the wind farm site adhere to Lake Turkana Wind Power’s environmental and social standards which define human rights expectations and community engagement.

LTWP’s main contractors, under supervision of LTWP, undertake monthly audits of their subcontractors on labour related aspects that could become human rights issues, such as payroll, accommodation, working conditions and health and safety.

LTWP is audited on a quarterly basis by an external party on behalf of the Project’s Lenders.

LTWP has developed and implemented environmental and social policies and management plans, including : LTWP’s overarching Environmental and Social Policies; Community Health and Safety Management Plan; Stakeholder Engagement Plan; Village Management Plan; Biodiversity and Conservation Management Plan; Cultural Heritage Chance Finds Procedures; Occupational Health and Safety Management Plan; Security Management Plans and Emergency Preparedness and Response Plan, amongst others. These policies and plans are updated on an ongoing basis.

22. Who should we contact in case of grievances?

The project has a grievance mechanism that handles grievances submitted by stakeholders, be it local community members or other interested/affected parties.

Any individual or group can contact one of the Project’s Community Liaison Officers (CLO), who will then proceed to register and investigate the complaint. Our CLOs are based in the wider project area and their contacts have been widely distributed.

If you do not have the contact details of one of our CLOs, then you can get in touch with us using our dedicated grievances’ email address: feedback@ltwp.co.ke

 

CONTACTS

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+254 (0)20 221 3493

Lake Turkana Wind Power Ltd
P.O. Box 2114 - 00502,
Karen, Nairobi,
Kenya

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feedback@ltwp.co.ke

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